From the 2001-02 income year, the Medicare levy low income thresholds and Medicare levy thresholds for pensioners less than age pension age will be increased.
The Medicare levy low income threshold for individuals will increase to $14,539 for individuals and to $24,534 for families. The additional amount of threshold for each dependent child or student will also be increased to $2,253. The increase in threshold takes into account movements in the CPI and ensures that low income families and individuals are exempt from paying the levy.
The Medicare levy threshold for pensioners below age pension age is also to be increased. From the 2001-02 income year, the threshold will be $16,570. This will ensure that pensioners below age pension age do not pay the Medicare levy while they do not have an income tax liability.